Chinese artificial intelligence startup Zhipu AI has raised over 1 billion yuan ($137.22 million) in fresh funding, following a previous 3 billion yuan investment. The funding round takes place amid growing competition in China’s AI sector, particularly with the rise of DeepSeek, whose large language models claim to rival Western alternatives at lower costs.
The investment was backed by state-affiliated Hangzhou City Investment Group Industrial Fund and Shangcheng Capital. Zhipu AI announced that the funds will be used to enhance its GLM large language model and expand its AI ecosystem, with a strategic focus on businesses in Zhejiang province and the Yangtze River Delta economic zone.
The deal underscores Hangzhou’s ambition to become a leading AI hub, with the city’s state-owned enterprises actively supporting artificial intelligence ventures. The investment also reflects Hangzhou City Investment Group’s commitment to fostering AI innovation through its industrial fund, launched just a year ago.
Zhipu AI continues to position itself as a key player in China’s AI landscape, competing against established and emerging firms as it accelerates AI-driven enterprise solutions and technological advancements.
